Global brokerage firms on Friday reiterated confidence in Adani Power Limited (APL) following the company’s strong operational performance during the September quarter (Q2 FY26).
Morgan Stanley, Jefferies, and Cantor Fitzgerald all maintained positive ratings while raising their price targets, citing Adani Power’s expanding power generation portfolio and steady financial metrics.
Morgan Stanley reaffirmed its Overweight rating on Adani Power with an In-Line industry view, setting a price target of ₹163.60, representing a modest 1 per cent upside from Thursday’s closing price of ₹162.57.
The brokerage praised the company’s efficient project execution and strong receivables position, which continue to underpin its stable financial performance.
Jefferies maintained its Buy rating and sharply increased its price target to ₹195 from ₹138 earlier, implying a 20 per cent potential upside.
The brokerage noted that Adani Power merits a valuation premium over state-run NTPC due to its ‘significantly higher margins and growth trajectory’.
Jefferies observed that Adani Power’s price-to-earnings (P/E) multiple currently trades at an 80 per cent premium to NTPC’s 10x valuation, reflecting market confidence in its superior operational performance.
Similarly, Cantor Fitzgerald maintained its Overweight stance and raised its price target by 32 per cent to ₹184, highlighting the company’s expanding power purchase agreements (PPAs) and strong earnings visibility over the medium term.
Strong Operational Performance
Adani Power recently reported consolidated revenue of ₹13,106 crore and an EBITDA of ₹6,001 crore for Q2 FY26, supported by a 7.4 per cent rise in power sale volumes despite seasonal monsoon disruptions.
The company’s solid results underscored its resilient business model and operational efficiency amid fluctuating demand conditions.
During its latest earnings call, Adani Power announced that its new PPA bidding pipeline now stands at approximately 22 GW, of which 14.5 GW have already been awarded.
The company currently holds the lowest bidder (L1) status for a 3.2 GW thermal project in Assam, while bids for Rajasthan (3.2 GW) and Uttarakhand (1.3 GW) are underway.
Adani Power’s management reaffirmed its ambitious goal of expanding its total capacity to 42 GW by 2031-32, in line with India’s rising electricity demand.
CEO SB Khyalia stated that the company has already secured land and ordered equipment for its planned 23.7 GW expansion, with project implementation progressing at a pace.
“Our strong profitability and liquidity position us well to achieve our enhanced capacity expansion goal of 42 GW by 2031-32,” Khyalia said.
Brokerages believe Adani Power’s aggressive capacity growth, strong balance sheet, and favourable demand outlook make it one of the most attractive plays in India’s power sector.
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